Big beat for Goldman Sachs

Lloyd BlankfeinGoldman SachsGoldman Sachs CEO Lloyd Blankfein.

Goldman Sachs reported third-quarter earnings Tuesday and it was a big beat.

The firm reported diluted earnings per share of $4.88 on revenue of $8.17 billion.

Analysts were expecting adjusted earnings per share of $3.88 on revenue of $7.41 billion, according to Bloomberg.

“We saw solid performance across the franchise that helped counter typical seasonal weakness,” CEO Lloyd Blankfein said in a statement. “We continue to manage our balance sheet conservatively and are benefiting from the breadth of our offerings to clients.”

The firm beat on investment banking and trading revenues across the board. Here’s the tally:

  • Total trading revenues came in at $3.75 billion ($3.39 billion expected), up 17% from the year-ago quarter and 2% from the second quarter.
  • Fixed income, currency, and commodities trading revenues were $1.96 billion ($1.70 billion expected), up 34% year-over-year and up 2% from the second quarter.
  • Equities revenues of $1.78 billion ($1.69 billion expected) were up 2% from the year-ago quarter and up 2% from the second-quarter.
  • Investment banking revenue came in at $1.54 billion ($1.47 billion expected), down 1% from the year-ago quarter and down 14% from the second quarter.

In the same quarter last year, Goldman missed expectations, citing “renewed concerns about global economic growth.” It reported adjusted earnings per share of $2.64 ($3.00 expected) on revenue of $6.86 billion ($7.12 expected).

In the second quarter, the firm posted a big beat, reporting earnings per share of $3.72 ($3.08 expected) on revenue of $7.93 billion ($7.55 billion expected).

Goldman Sachs last Thursday launched an online consumer lending platform, marking another step towards consume retail banking for the firm. In April it launched a digital savings account on GSBank.com.

JPMorgan, Citigroup,
Wells Fargo, and Bank of America have already reported Q3 earnings. Morgan Stanley will report on Wednesday.

NOW WATCH: An economist explains why Clinton’s plan to raise the minimum wage to $15 might be ‘too much, too quickly’

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.